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TSX: FNV | NYSE: FNV CORPORATE PRESENTATION FEBRUARY 2021 Corporate Presentation March 2021
Cautionary Statement Forward Looking Statements This presentation contains “forward looking information” and “forward looking statements” within the meaning of applicable Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995, respectively, which may include, but are not limited to, statements with respect to future events or future performance, management’s expectations regarding Franco-Nevada’s growth, results of operations, estimated future revenues, carrying value of assets, future dividends and requirements for additional capital, mineral reserve and mineral resource estimates, production estimates, production costs and revenue, future demand for and prices of commodities, expected mining sequences, business prospects and opportunities, audits being conducted by the Canada Revenue Agency (“CRA”), the expected exposure for current and future assessments and available remedies, the remedies relating to and consequences of the ruling of the Supreme Court of Panama in relation to the Cobre Panama project, the aggregated value of common shares which may be issued pursuant to the Company’s at-the-market equity (“ATM”) program, and the Company’s expected use of the net proceeds of the ATM program, if any. In addition, statements (including data in tables) relating to reserves and resources and gold equivalent ounces are forward looking statements, as they involve implied assessment, based on certain estimates and assumptions, and no assurance can be given that the estimates and assumptions are accurate and that such reserves and resources and gold equivalent ounces will be realized. Such forward looking statements reflect management’s current beliefs and are based on information currently available to management. Often, but not always, forward looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budgets”, “scheduled”, “estimates”, “forecasts”, “predicts”, “projects”, “intends”, “targets”, “aims”, “anticipates” or “believes” or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Forward looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Franco-Nevada to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements. A number of factors could cause actual events or results to differ materially from any forward looking statement, including, without limitation: the price at which common shares are sold in the ATM program and the aggregate net proceeds received by the Company as a result of the ATM program; fluctuations in the prices of the primary commodities that drive royalty and stream revenue (gold, platinum group metals, copper, nickel, uranium, silver, iron-ore and oil and gas); fluctuations in the value of the Canadian, Australian dollar and Mexican Peso and any other currency in which revenue is generated, relative to the U.S. dollar; changes in national and local government legislation, including permitting and licensing regimes and taxation policies, and the enforcement thereof; regulatory, political or economic developments in any of the countries where properties in which Franco-Nevada holds a royalty, stream or other interest are located or through which they are held; risks related to the operators of the properties in which Franco-Nevada holds a royalty, stream or other interest, including changes in the ownership and control of such operators; influence of macroeconomic developments; business opportunities that become available to, or are pursued by Franco-Nevada; reduced access to debt and equity capital; litigation; title, permit or license disputes related to interests on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; whether or not Franco-Nevada is determined to have “passive foreign investment company” (“PFIC”) status as defined in Section 1297 of the United States Internal Revenue Code of 1986, as amended; potential changes in Canadian tax treatment of offshore streams; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; access to sufficient pipeline capacity; actual mineral content may differ from the reserves and resources contained in technical reports; rate and timing of production differences from resource estimates, other technical reports and mine plans; risks and hazards associated with the business of development and mining on any of the properties in which Franco-Nevada holds a royalty, stream or other interest, including, but not limited to unusual or unexpected geological and metallurgical conditions, slope failures or cave-ins, flooding and other natural disasters, terrorism, civil unrest or an outbreak of contagious disease; the impact of the COVID-19 (coronavirus) pandemic; and the integration of acquired assets. The forward looking statements contained in this presentation are based upon assumptions management believes to be reasonable, including, without limitation: the ongoing operation of the properties in which Franco-Nevada holds a royalty, stream or other interest by the owners or operators of such properties in a manner consistent with past practice; the accuracy of public statements and disclosures made by the owners or operators of such underlying properties; no material adverse change in the market price of the commodities that underlie the asset portfolio; Franco-Nevada’s ongoing income and assets relating to determination of its PFIC status; no material changes to existing tax treatment; the expected application of tax laws and regulations by taxation authorities; the expected assessment and outcome of any audit by any taxation authority; no adverse development in respect of any significant property in which Franco-Nevada holds a royalty, stream or other interest; the accuracy of publicly disclosed expectations for the development of underlying properties that are not yet in production; integration of acquired assets; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended. However, there can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements and investors are cautioned that forward looking statements are not guarantees of future performance. In addition, there can be no assurance as to the outcome of the ongoing audits by the CRA or the Company’s exposure as a result thereof. Franco-Nevada cannot assure investors that actual results will be consistent with these forward looking statements and investors should not place undue reliance on forward looking statements due to the inherent uncertainty therein. For additional information with respect to risks, uncertainties and assumptions, please refer to the “Risk Factors” section of Franco-Nevada’s most recent Annual Information Form filed with the Canadian securities regulatory authorities on www.sedar.com and Franco-Nevada’s most recent Annual Report filed on Form 40-F filed with the SEC on www.sec.gov. The forward-looking statements herein are made as of the date herein only and Franco-Nevada does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law. Non-IFRS Measures Cash Costs, Adjusted Net Income, Adjusted EBITDA and Margin are intended to provide additional information only and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with International Financial Reporting Standards (“IFRS”). They do not have any standardized meaning under IFRS, and may not be comparable to similar measures presented by other issuers. Management uses these measures to evaluate the underlying operating performance of the Company as a whole for the reporting periods presented, to assist with the planning and forecasting of future operating results, and to supplement information in its financial statements. The Company also uses Margin in its annual incentive compensation process to evaluate management’s performance in increasing revenue and containing costs. Management believes that in addition to measures prepared in accordance with IFRS such as Net Income and Earnings per Share (“EPS”), our investors and analysts use these measures to evaluate the results of the underlying business of the Company, particularly since the excluded items are typically not included in guidance. While the adjustments to Net Income and EPS include items that are both recurring and non-recurring, management believes these measures are useful measures of the Company’s performance because they adjust for items which may not relate to or have a disproportionate effect on the period in which they are recognized, impact the comparability of our core operating results from period to period, are not always reflective of the underlying operating performance of our business, and/or are not necessarily indicative of future operating results. For a reconciliation of these measures to various IFRS measures, please see the end of this presentation or the Company’s most recent Management’s Discussion and Analysis filed with the Canadian securities regulatory authorities on www.sedar.com and with the SEC on www.sec.gov. This presentation does not constitute an offer to sell or a solicitation of an offer to purchase any security in any jurisdiction. TSX: FNV | NYSE: FNV 2
The Gold Investment That Works
Compounded Average Annual Total Returns Since FNV Inception1, 3, 4
Leading gold
focused streaming
and royalty company
NYSE and TSX listed
~$21 B market cap.2
Held by Fidelity,
BlackRock, Capital
World, MFS
1. FNV Inception – December 20, 2007
2. As at February 28, 2021
3. Compounded annual total returns to February 28, 2021
4. Source: TD Securities; Bloomberg
TSX: FNV | NYSE: FNV 3
The Gold Investment That Works
Our Approach:
Shareholders Operators Community
Lower-risk gold investment to hedge Long term alignment and financial High governance standards, diversity,
against market instability flexibility responsible mining and contributing to
social licence
Business Portfolio Track Record Growth
Model
TSX: FNV | NYSE: FNV 4
Business Model Antapaccay TSX: FNV | NYSE: FNV 5
Proven Business Model
Maximize
Long-Term Optionality
FNV does not operate, develop or
explore for mines. Instead it has a broad Exploration Security of Focus on
portfolio of royalties and streams on Upside Tenure New
many operations allowing it to: Investments
Minimize
Cost Margin Involvement
Exposure Encroachment in Operations
TSX: FNV | NYSE: FNV 6
Why We Are Different
Shareholder Alignment
.
Share ownership
.
Streams and Royalties Low G&A Cyclical Investing
.
Stable long-life streams and gold Board experience investing in cyclical
royalty optionality markets
.
Focus on gold. Add other resource
optionality opportunistically
Asset Selection
.
Board/management technical skills
. Financial Flexibility
Focus on exploration optionality .
. Maximize capital available for industry
Ensure good tenure downturns
TSX: FNV | NYSE: FNV 7
ESG Rankings and Commitments
Top ESG Rankings
Ranked #1 by Sustainalytics In 2020, Franco-Nevada Rated “Prime” by ISS ESG Ranked #2 among mining
out of 84 gold companies received an MSCI ESG Rating in August 2020 companies in Canada in the
of “AA” Globe and Mail’s
2020 Board Games
Our Commitments
UN Global Compact Participant Member of World Gold Council BlackNorth Initiative Board and Sr. Management
Diversity
Signatory to UN Global Compact Committed to Responsible Gold Signatory to BlackNorth
Mining Principles Initiative pledge to address Goal of 40% diverse
and alleviate systemic racism representation by 2025
TSX: FNV | NYSE: FNV 8
Diversity and Contributions
Gender & Racial Diversity1 Diversity Initiatives
Independent Directors Senior Management
Women Directors Visible Minorities
Patron Sponsor Franco-Nevada Diversity
33% 36% Prosperity Project Scholarship Program
Community Funding
All Employees All Employees
Women Employees Visible Minorities
49% 40%
1. As at March 2021
TSX: FNV | NYSE: FNV 9
Asset Portfolio Cobre Panama
Brucejack
Weyburn Hemlo
Detour Lake
Stillwater Kirkland Lake
Diversified Portfolio
Sudbury
Goldstrike
Gold Quarry Marcellus
Bald Mountain SCOOP/STACK
Permian Haynesville
400 Assets
Guadalupe Covering 44,000 km2
Tasiast
Sabodala
Gold & Gold Cobre Panama
Subika
Equivalents Energy
318 82
TOTAL TOTAL Antamina
Condestable
54 55 Antapaccay
Producing Producing1
Duketon
41 27
MWS
Advanced Exploration2 Candelaria
223
Exploration2
1. 9 producing Energy assets shown
(As at March 9, 2021) 2. Exploration assets not shown
TSX: FNV | NYSE: FNV 11Core Assets Outperforming
Antamina Cobre Panama
$610M investment $1.36B investment
2020 revenue: $57M 2020 revenue: $135M
Mine life potential1: 30+ years Mine life potential1: 35+ years
Silver production has exceeded Expanding to 100Mtpa in 20234
expectations2
Candelaria
$655M investment
Antapaccay
$500M investment 2020 revenue: $107M
Mine life potential1 : 25+ years
2020 revenue: $119M UG exploration success has expanded mine
Mine life potential1 : 30+ years life5
Coroccohuayco deposit to extend mine life3
1. Mine life potential includes Franco-Nevada assessment of resource conversion potential. Also 2. Based on FNV sales from inception of stream through Q3 2020 vs. acquisition guidance
assumes current or operator forecasted production rates. Antamina potential assumes 3. Operator now contemplating an open pit only scenario with a later start date
additional tailings capacity is permitted. Antapaccay potential assumes Coroccohuayco 4. Design throughput was originally 58Mtpa
project developed. 5. Mine life was 14 years in Technical Report July 28, 2014
TSX: FNV | NYSE: FNV 12Long Life Assets
Reserve Life
2014
Long duration portfolio Franco-Nevada
increases optionality 2019
Long-term cash flow
2014
generation Sr. Gold Producers
2019
2014
Int. Gold Producers
2019
Years
0 2 4 6 8 10 12 14 16 18 20
Source: Bank of America Merrill Lynch North American Precious
Metals Weekly (March 27, 2017 and July 8, 2019)
Senior Gold Producers: Agnico Eagle, Barrick, Goldcorp, Kinross,
Newmont
Intermediate Gold Producers: Alamos Gold, Centerra, IAMGOLD,
New Gold, Yamana
TSX: FNV | NYSE: FNV 13BUSINESS MODEL
Exploration Optionality
2007 2008 - 2019 2019
Gold ounces1at Gold ounces1 of same assets
time of IPO as reported Dec. 2019
90
+114%
80
Proven & Probable Reserves2 (Moz)
70
60
Reserves increased >37 Moz produced
more than 3x over 12 50
years
40
30
20
>$1.4B2 revenue to
10 FNV from portfolio
0
IPO Reserves increase at no
$1.2B paid for portfolio cost
1. Total ounces associated with top 37 assets at IPO. Total ounces are not the same as FNV Royalty Ounces. Refer to 2020 Asset Handbook at www.franco-nevada.com.
Mineral Resources are exclusive of Mineral Reserves. Includes estimates of Mineral Reserves & Resources made under JORC code and SAMREC code.
2. Revenue from original FNV portfolio includes gold, platinum and palladium revenue.
TSX: FNV | NYSE: FNV 14Track Record Candelaria TSX: FNV | NYSE: FNV 15
Track Record
9 months
9 months
9 months
9 months
1. Please see notes on Appendix slide – Non-IFRS Measures
2. 2020 data as of December 31, 2020
TSX: FNV | NYSE: FNV 16Increasing Profitability 2020 EBITDA Margin of 82% and Adjusted Net Income Margin of 51% TSX: FNV | NYSE: FNV 17
Progressive & Sustainable Dividends
$200 Quarterly Dividend Increased to
$0.30 per share
$180
Effective with Q2 2021 dividend
$160
payment1
US $ (Millions) per annum
$140
Will be the 14th annual dividend
increase
$120
$100
Indicative 2021 Dividends of $222M2
$80
$60
~$1.5B paid since IPO3
$40 IPO investors now realizing
7.9% yield (U.S.)4
$20
10.0% yield (CDN)4
$0 1. Formal declaration planned for May 2021 with payment by the
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 end of June 2021
2. Assumes current share count is maintained and announced
dividend increase in June 2021
3. Includes DRIP and March 2021 declared dividend
4. As at June 2021 dividend record date
TSX: FNV | NYSE: FNV 18Outperforming in Bull and Bear Markets 1. Source: TD Securities; Bloomberg 2. All returns are in US$ as of February 28, 2021 3. Total return assumes reinvestment of dividends over designated period TSX: FNV | NYSE: FNV 19
Growth Outlook Antamina TSX: FNV | NYSE: FNV 20
Guidance
2021 2025
555,000-585,000 600,000-630,000
GEOs
+ Cobre Panama GEO deliveries continue to ramp up + New mines – Hardrock, Salares Norte, Stibnite Gold, Valentine Lake
+ Antamina, Candelaria + Sudbury still producing
+ Condestable new addition - MWS – cap met in 2024
- Smaller Karma variable deliveries
- Hemlo, Sudbury – reduced production
2021 2025
Revenue
Energy
$115-$135 million $150-$170 million
+ Higher commodity prices + Continental capital commitment fully funded
+ Contribution from Haynesville Royalty + Assumes rebound to 80% of 2019 US drilling levels by 2025
- Limited growth in US drilling activity
2021 Depletion 2022-2025 Funding Commitments
Estimate $250-$280 million (was $241 million in 2020) $54-$64 million Continental partnership funding
2021 Funding Commitments
$165 million Condestable Acquisition
$50-$60 million Continental partnership funding
$50 million Solgold option to upsize Alpala royalty
Assuming: $1,750/oz Au; $25.00/oz Ag; $1,100/oz Pt; $2,200/oz Pd
Assuming $55/bbl WTI, $2.50/mcf NYMEX
TSX: FNV | NYSE: FNV 21Core Asset Contribution Higher contribution from Core Assets in 2021 Cobre Panama ramp-up through 2025 GEOs for the years 2019 and 2020 represent actuals. GEOs for the year 2021 and 2025 represent midpoint of the guidance issued in March 2021. TSX: FNV | NYSE: FNV 22
Growth Drivers
Asset Expansions Period New Mines Est. Start1
Cobre Panama (Panama) ramp-up 2021-2024 Salares Norte (Chile) 2023
Stillwater (Montana) expansion 2021-2024 Aphrodite (Australia) 2023
Detour Lake (Ontario) expansion 2021-2025 Bateman (Ontario) 2024
Valentine Lake (Newfoundland) 2024
Tasiast (Mauritania) 24k expansion 2021-2023
Hardrock (Ontario) 2025
Subika (Ghana) UG expansion 2023-2025
Stibnite Gold (Idaho) 2025
Macassa (Ontario) expansion 2023-2025
Yandal/Bronzewing (Australia) 2025
Island Gold (Ontario) expansion 2024-2025
Energy Growth
SCOOP/STACK (USA)
Permian Basin (Texas)
Orion (Alberta) phase 2D expansion
Stillwater
1. Estimated start based on operator guidance
TSX: FNV | NYSE: FNV 23Available Capital
Working Marketable Credit Available
Capital1, 2 Securities1 Facilities1, 3
Capital4
$610.5 M $191.8 M $1.1 B
$1.9 B
1.
2.
As at December 31, 2020
Please see notes on Appendix slide – Non-IFRS Measures
DEBT FREE
3. Facilities include $1B Corporate, $100M Barbados.
4. Funding commitments subsequent to December 31, 2020 will be funded with cash flow from operations
TSX: FNV | NYSE: FNV 24Condestable Precious Metals Stream
$165M Acquisition with Immediate Precious Metals Cash Flow
Proven operation with Condestable is an operating underground copper-gold-silver mine located 90 km south of
excellent potential for Lima at low elevation
expansions and mine life
extension (50+ year Mineral Resources of 151 Mt1
operating history) • M&I of 91 Mt @ 0.9% Cu, 0.24 g/t Au, 6.2 g/t Ag
Large, prospective land • Inferred of 61 Mt @ 0.9% Cu, 0.24 g/t Au, 6.3 g/t Ag
package (~45,000 ha)
Mine expansion from 7 ktpd to 8.4 ktpd expected by late 2021 with key equipment purchased
Low cost operation (2nd • Life of mine forecast
quartile Cu cash costs) average annual
production of 20-24 kt
Co-sponsorship of local Cu, 14-17 koz Au, and
ESG initiatives 400-500 koz Ag2
• +15 year mine life
potential at similar
1. Condestable internal global, in situ, Mineral Resource grades
2.
estimate as at 31/12/2020. 2020 Mineral Reserves pending
Produced metal in concentrate, excluding payability. High Condestable
end of the range assumes increased throughput and
additional permitting • Potential to increase
throughput to >10 ktpd Note: Technical and scientific information included herein re the Condestable Project was reviewed and approved by Phil Wilson,
C.Eng., Vice President, Technical of Franco-Nevada Corporation and a “Qualified Person” as defined in NI 43-101.
TSX: FNV | NYSE: FNV 25Resource Potential
Excellent Near Mine Potential in an Extensive IOCG Belt
IOCG Deposits in the Andes Cu Belt Condestable Stream Area (~45,000 ha)
TSX: FNV | NYSE: FNV 26Condestable Long Section
Significant Intersections Indicate Mineralization Open at Depth and Along Strike
Stream applies to all of Condestable,
Raul and Vinchos
TSX: FNV | NYSE: FNV 27Key Stream Terms
Exposure to Resource Optionality with the Benefit of Initial Fixed Deliveries
Delivery Schedule
Franco-Nevada (Barbados) Corporation funded the
$165M stream, which is effective from Variable Variable
Fixed Deliveries Phase 1 (2) Phase 2 (2)
January 1, 2021 (First 5 years) (After year ~10 (3) or
(Years 5-10) (3) delivery reduction)
The operator(1) is owned by Southern Peaks
Mining, a GNRI portfolio company Au Threshold
0 to 43.8 43.8 to 87.6 > 87.6
(Koz Au)
Proceeds will repay indebtedness, taxes and
complete expansion to 8.4 ktpd 2,190
Au Delivery 63% 25%
oz/quarter
Quarterly gold and silver deliveries are fixed for
five years, followed by a percentage of gold and Ag Threshold
0 to 1.45 1.45 to 2.91 > 2.91
silver in concentrate (Moz Ag)
Ability for the Seller to defer fixed deliveries for up 72,750
Ag Delivery 63% 25%
to 4 quarters with a penalty oz/quarter
Delivery reduction option for first 4 years, at the Ongoing Price 20% of spot Au/Ag price
Seller’s option, with a delivery of gold (valued at
$119M) which would trigger the immediate start of
the phase 2 variable deliveries (i.e. 25% of 1. Compañia Minera Condestable S.A. is 98.68% owned by Southern Peaks Mining and 1.32% by LS Nikko and others
2. Variable deliveries is based on 100% of produced metal in concentrate
produced precious metals) 3. Actual timing dependent on deliveries
TSX: FNV | NYSE: FNV 28Haynesville Royalty Acquisition
$135M Acquisition of Royalty Assets in Haynesville Shale
Secure tenure:
• ~2,740 net acres1 of mineral title in
NE Texas providing perpetual
ownership acquired from Mesa
Minerals Partners LLC
Attractive underlying economics:
• Strong well performance
• Proximity to U.S. Gulf Coast
Royalties assembled under partnership
between Mesa & Rockcliff Energy LLC:
• Sponsored by Quantum Energy
Partners
• Operator for ~75% of acreage
• Most active operator in East Texas
Haynesville with 4 rig program
since Q1 2018
1. Gross acres multiplied by ownership interest
multiplied by royalty rate
TSX: FNV | NYSE: FNV 29Haynesville Royalty Acquisition
Strong current cash flow:
• Royalties generated $4.2M in Q4 revenue
from 2.0 bcfe of natural gas1
Long life:
• ~700 undeveloped well locations
• Inventory supports ~12 years of drilling
at current rates of ~60 well/year
• Followed by long production tail as wells
decline
Diversification:
• Increases portfolio weighting to natural
gas
• Adds exposure to new basin
Haynesville
1. Oct 1, 2020 effective date
TSX: FNV | NYSE: FNV 30Royalty Ounce Breakdown
Core Assets
Cobre
4.9 Moz
Panama
Candelaria 1.3 Moz
Antapaccay 0.9 Moz
Antamina 0.6 Moz
4.9 Moz + 7.7 Moz + 2.9 Moz
15.5 M M&I Royalty Ounces
Plus > 240 development and exploration assets
For calculation of M&I Royalty Ounces refer to Franco-Nevada 2020 Asset
Handbook. New additions are Alpala and Condestable
TSX: FNV | NYSE: FNV 31TSX: FNV | NYSE: FNV CORPORATE PRESENTATION Thank you for FEBRUARY 2021 your interest in Franco-Nevada
Appendix – Non-IFRS Measures
Adjusted Net Income For the three months ended For the year ended
1. GEOs include our gold, silver, platinum, palladium and other mining assets, after applicable recovery and payability factors, and do not include
December 31, December 31, Energy assets. GEOs are estimated on a gross basis for NSR royalties and, in the case of stream ounces, before the payment of the per ounce
(expressed in millions, except per share amounts) 2020 2019 2020 2019
contractual price paid by the Company. For NPI royalties, GEOs are calculated taking into account the NPI economics. Platinum, palladium, silver
Net Income $ 176.7 $ 113.3 $ 326.2 $ 344.1 and other minerals are converted to GEOs by dividing associated revenue, which includes settlement adjustments, by the relevant gold price. The
Impairment charges and reversals (9.6) — 262.1 — gold price used in the computation of GEOs earned from a particular asset varies depending on the royalty or stream agreement, which may make
Foreign exchange (gains)/losses and other (income)/expenses (2.5) (2.8) (2.8) (2.8) reference to the market price realized by the operator, or the average for the month, quarter, or year in which the mineral was produced or sold.
Tax effect of adjustments (1.6) 0.3 (69.2) 0.2
2. Adjusted Net Income and Adjusted Net Income per share are non-IFRS financial measures, which exclude the following from net income and EPS:
Adjusted Net Income $ 163.0 $ 110.8 $ 516.3 $ 341.5
impairment charges related to royalty, stream and working interests and investments; gains/losses on sale of royalty, streams and working interests
Basic weighted average shares outstanding 190.9 188.8 190.3 187.7 and investments; foreign exchange gains/losses and other income/expenses; unusual non-recurring items; and the impact of income taxes on these
Adjusted Net Income per share $ 0.85 $ 0.59 $ 2.71 $ 1.82 items. Please refer to the Q4 2020 MD&A for details as to the relevance of these non-IFRS measures, and to the following appendix for a
Adjusted EBITDA For the three months ended For the year ended reconciliation to the closest IFRS measures.
December 31, December 31, 3. Adjusted EBITDA and Adjusted EBITDA per share are non-IFRS financial measures, which exclude the following from net income and earnings per
(expressed in millions, except per share amounts) 2020 2019 2020 2019 share (“EPS”): income tax expense/recovery; finance expenses; finance income; depletion and depreciation; non-cash costs of sales; impairment
Net Income $ 176.7 $ 113.3 $ 326.2 $ 344.1 charges related to royalty, stream and working interests and investments; gains/losses on sale of royalty, streams and working interests and
Income tax expense 21.5 17.2 13.3 61.8 investments; and foreign exchange gains/losses and other income/expenses. Please refer to the Q4 2020 MD&A for details as to the relevance of
Finance expenses 0.8 2.1 3.5 10.6 these non-IFRS measures, and to the following appendix for a reconciliation to the closest IFRS measures.
Finance income (0.7) (0.8) (3.7) (3.5)
4. Cash Costs attributable to GEOs sold and Cash Costs per GEO sold are non-IFRS financial measures. Cash Costs attributable to GEOs sold is
Depletion and depreciation 67.5 72.7 241.0 263.2 calculated by starting with total costs of sale and excluding depletion and depreciation, costs not attributable to GEOs sold such as our Energy
Impairment charges and reversals (9.6) — 262.1 — operating costs, and other non-cash costs of sales such as costs related to our prepaid gold purchase agreement. Cash Costs is then divided by
Foreign exchange (gains)/losses and other (income)/expenses (2.5) (2.8) (2.8) (2.8) GEOs sold, excluding prepaid ounces, to arrive at Cash Costs per GEO sold. Please refer to the Q4 2020 MD&A for details as to the relevance of these
Adjusted EBITDA $ 253.7 $ 201.7 $ 839.6 $ 673.4 non-IFRS measures, and to the following appendix for a reconciliation to the closest IFRS measures.
Basic weighted average shares outstanding 190.9 188.8 190.3 187.7
5. Margin is defined by the Company as Adjusted EBITDA divided by revenue. Please refer to the Q4 2020 MD&A for details as to the relevance of this
Adjusted EBITDA per share $ 1.33 $ 1.07 $ 4.41 $ 3.59 non-IFRS measures, and to the following appendix for a reconciliation to the closest IFRS measure.
Cash Costs For the three months ended For the year ended 6. The Company defines Working Capital as current assets less current liabilities.
December 31, December 31,
7. Fiscal years 2010 through 2020 were prepared in accordance with IFRS. Fiscal years 2008 and 2009 were prepared in accordance with Canadian
(expressed in millions, except per GEO amounts) 2020 2019 2020 2019
GAAP.
Total costs of sales $ 114.2 $ 119.0 $ 399.8 $ 408.0
Depletion and depreciation (67.5) (72.7) (241.0) (263.2)
Energy operating costs (1.9) (2.2) (6.4) (7.3) 2020 2019 Q4 2020 Q4 2019
Cash Costs attributable to GEOs sold $ 44.8 $ 44.1 $ 152.4 $ 137.5
GEOs 147,476 153,396 521,564 516,438
Cash Costs per GEO sold $ 304 $ 287 $ 292 $ 266 Gold $1,770/oz $1,392 $1,873/oz $1,480/oz
Margin For the three months ended For the year ended
December 31, December 31,
(expressed in millions, except Margin) 2020 2019 2020 2019
Net Income $ 176.7 $ 113.3 $ 326.2 $ 344.1 Silver $20.55/oz $16.20/oz $24.39/oz $17.31/oz
Income tax expense (recovery) 21.5 17.2 13.3 61.8
Finance expenses 0.8 2.1 3.5 10.6
Finance income (0.7) (0.8) (3.7) (3.5) Platinum $884/oz $863/oz $939/oz $907/oz
Depletion and depreciation 67.5 72.7 241.0 263.2
Impairment charges and reversals (9.6) — 262.1 —
Foreign exchange (gains)/losses and other (income)/expenses (2.5) (2.8) (2.8) (2.8)
Adjusted EBITDA $ 253.7 $ 201.7 $ 839.6 $ 673.4 Palladium $2,194/oz $1,539/oz $2,348/oz $1,800/oz
Revenue 304.5 258.1 1,020.2 844.1
Margin 83.3 % 78.1 % 82.3 % 79.8 %
TSX: FNV | NYSE: FNV 33Board and Management
Board Management
David Tom Derek Dr. Catharine Louis Paul Sandip Lloyd
Harquail Albanese Evans Farrow Gignac Brink Rana Hong
Former CEO CEO Former CEO Chair Director, CFO CLO
Chair Rio Tinto MEG Energy TMAC Resources G Mining Ventures President & CEO
Maureen Jennifer Randall The Hon. David R. Elliott Eaun Jason
Jensen Maki Oliphant Peterson Pew Gray O’Connell
Former CEO Former CEO Former CEO Former Ontario Former Chair SVP, Business SVP, Energy
Ontario Securities Vale Canada Barrick Gold Premier EnerPlus Development
Commission
TSX: FNV | NYSE: FNV 34Business Model Benefits
Gold ETF FNV
Benefits of: Leverage to Gold Price
Exploration & Expansion
Dividend Yield
Limited Exposure to: Capital Costs
Operating & Other Costs
Royalties provide more yield and upside than a Gold ETF
TSX: FNV | NYSE: FNV 35Cobre Panama Growth
400 160,000
(LHS)
Cobre Panama2 estimated 350 140,000
copper production
(tonnes in thousands)
300 120,000
FNV’s attributable GEOs3 250 100,000
RHS
based on estimated copper
production4 (ounces)
200 80,000
150 60,000
1. 2020 GEOs sold
2. First Quantum 2021 to 2023 guidance dated
January 26, 2021 which has not yet been reflected
in FNV’s corporate guidance
100 40,000
3. Assuming: $1,750/oz Au; $25/oz Ag
4. FNV is entitled to $100/oz discount on initial stream
payments to provide a 5% return on capital for the
period from January 1, 2019 until mill throughput
50 20,000
capacity achieved 58 mtpy
0 0
1
2020 2021 2022 2023
TSX: FNV | NYSE: FNV 36Growth Drivers
Operating Assets
Candelaria (Chile) Reserve and Resource expansion
Detour Lake (Ontario) Single pit concept & expansion
Hemlo (Ontario) Down plunge of C-zone Candelaria
Duketon (Australia) Expanding Rosemont OP to UG
Macassa (Ontario) SMC, Main and Amalgamated break
Canadian Malartic (Quebec) East Gouldie reserve update Q1 2021
Mesquite (California) Reserve and Resource expansion
Canadian Malartic
TSX: FNV | NYSE: FNV 37Organic Growth News
Development and Exploration Assets
Hardrock (Ontario) Equinox and Orion acquiring project
Stibnite Gold (Idaho) Feasibility study completed
Wyloo Metals (Andrew Forrest)
Ring of Fire (Ontario)
investment
Valentine Lake (Newfoundland) Berry zone expansion
Eskay Creek (British Columbia) Phase 2 Infill drilling
Monument Bay (Manitoba) Evaluating an underground project
Crawford Nickel (Ontario) PEA Q1 2021
Fenelon (Quebec) 170,000 m drill program in 2021
Eskay Creek
TSX: FNV | NYSE: FNV 38CRA Audit (2012-2017)
Taxation Years Potential Income Potential Interest &
Reassessed Tax Payable1 Penalties1,4
Canadian Domestic Tax Matters 2014, 2015 $1.1M (C$1.4M)2 $0.2M (C$0.2M)
Transfer Pricing (Mexican Subsidiary) 2013, 2014, 2015 $19.9M (C$25.3M)3 $15.2M (C$19.5M)
Transfer Pricing (Barbadian Subsidiary) 2014, 2015 $5.3M (C$6.7M) $3.7M (C$4.7M)
Foreign Accrual Property Income (Barbadian Subsidiary) 2012, 2013 $6.0M (C$7.7M) $2.4M (C$3.1M)
Franco-Nevada does not believe that the Reassessments are supported by Canadian tax law and jurisprudence and intends
to vigorously defend its tax filing positions
CRA audit recently expanded to include 2016 and 2017. No proposals or reassessments have been received for these years
1. Canadian dollar amounts in this table have been converted to US dollars at the exchange rate applicable at December 31, 2020 as quoted by the Bank of Canada.
2. Tax payable after applying available non-capital losses and other deductions
3. Tax payable before any double taxation relief under the Canada-Mexico tax treaty
4. Includes transfer pricing penalties of $10.1M (C$12.8M)
TSX: FNV | NYSE: FNV 39You can also read
